Question

elaborate Acquisitions implemented by KNM GROUP (800 words)

Use view of Corporate strategy analysis.

Please answer with directly, (don't write something no related)  i will rate the answer

Answer 1

Answer:

KNM group has announced that the Company has on 14 January 2019 entered into a Share Purchase Agreement with Petrosab Sdn Bhd (“PSB”) to acquire the remaining balance of 6,048,884 ordinary shares or 99.34% equity shares of Petrosab Petroleum Sdn Bhd (“PPSB”). Upon the completion of the Acquisition, PPSB will become a wholly-owned subsidiary of the KNM group.

The Acquisition is undertaken to streamline the business segments and KNM Group Structure. The Acquisition will not have any material effect on the earnings per share, net assets, gearing, share capital and substantial shareholders’ shareholding of the KNM Group in the financial year of 2019. The Acquisition was not subject to the approval of shareholders of the Company and other associated authorities to the company. None of the Directors and major shareholders of the Company have any interest, either direct or indirect, in the acquisition. The Board after assessing all the aspects of the acquisition confirmed that the acquisition is carried out in the best interest of the KNM Group.

This acquisition will cater to the current and future oil and gas development in Sabah region. The PPSB Company has a manufacturing plant which would be used to manufacture process equipment in Sabah, so as to strengthen the development of oil and gas projects that would benefit the Sabah region in the future course of time.

Through this collaboration, PPSB aims to develop the Sabah Plant into a major hub for process equipment manufacturing which would enhance Sabah region in the aspect of employment, supporting industry, technology transfer and human capital transformation.